Question

What primarily determines the classification of an industry as increasing, constant, or decreasing cost?

पर्याय

• The size of the firms in the industry

• The balance between external economies and diseconomies

• The type of product produced

• The volume of imports

Answer 1

The balance between external economies and diseconomies

Explanation:

The industry classification depends on whether external economies or diseconomies dominate as industry output expands.